Gold prices rose on
Tuesday to a six-week high ahead of Christmas holidays, as the precious metal
benefited from weak economic data from the United States and concerns over a temporary
trade agreement between the United States and China.
As of 08:15 GMT, spot
gold hovered around $1,495.35 an ounce, where the precious metal hit the
highest level today at $1,495.40.
The precious metal is
heading towards its best annual performance since 2010, up 16 percent due to
the 17-month trade dispute that has disrupted global financial markets.
Data released on Monday showed
an unexpected drop in U.S. durable goods orders by 2 percent in November, the
biggest fall since May, signifying the manufacturing sector remained weak last
month.
Adding to concerns is
that Canada's economy contracted lower than expected by 0.1 percent in October,
marking the first monthly decline since February, partly due to a U.S. auto
strike that adversely affected manufacturing.
On the trade front, investors
are awaiting further developments on the phase one agreement between the
world's two largest economies.
Even as Beijing and
Washington took steps to defuse their conflict, they differ on a range of
issues, including anti-government protests in Hong Kong.
As for other precious
metals, silver rose 1.02 percent to $17.67 an ounce, after reaching its highest
level since November 7 at $17.64 earlier in the session.
Palladium slumped by
0.16 percent to trade at $1,846.60 an ounce, while platinum rose by 0.22
percent at $940.45.
The dollar index, which tracks the performance
of the U.S. currency against a basket of six major currencies, rose 0.08
percent at 97.30.